Handshake agreements, oftentimes referred to as oral contracts, are generally just as valid as their written counterparts. The problem with oral contracts, however, is the difficulty in enforcing the contract terms due to an apparent lack of supporting physical evidence. People oftentimes rely on spoken agreements instead of written contracts for various reasons. More particularly, written contracts can be perceived as being too formal, can require the assistance of an expensive attorney, or can be viewed as being too time consuming.
Despite having a recording of the conversation in which the terms of the oral contract are discussed, the oral contract can still be deemed unenforceable if evaluated under laws that require supplementary written material and/or witnesses that are able to corroborate the contracting parties' mutual agreement to the terms with an intent to be bound. Moreover, many jurisdictions still require that a contract generally be evidenced in writing to be deemed enforceable.
While mobile computing technology (e.g., smart phones) is prevalent in society, the capability to record such oral contracts remains readily available. The ability to harness this technology for authenticating and verifying the contracting parties' mutual agreement to the terms would be very beneficial.